1. Depends on what you mean by internet capabilities. It can play games over the internet if the game supports it. If you mean browsing, e-mail, etc., you'll have to wait for a third party solution, but it is possible.
2. It does not plug into your computer, but in the future you'll likely be able to connect to it wirelessly.
3. No.
4. All of the first-party games should be the same price at $29.99.
5. GOOGLE IS YOUR FRIEND.